A new report released today by the Major Church Providers of social services in Australia shows some people living on the dole are living in such poverty, that their chances of getting a job are seriously limited.

UnitingCare Australia today reiterated its support for an essential, modest increase of $50 a week in unemployment benefits, as Greens’ senator Rachel Siewert attempts to live on Newstart for the next week.

UnitingCare Australia’s National Director, Lin Hatfield Dodds said the Coalition’s decision to cut the Income Support Bonus, should it form government after the Federal election in September, will deliver a significant blow to low income Australians including people on Newstart, Youth Allowance and Parenting payments.

Our vision

All Australians should have the means and opportunity to live a decent life of financial health and wellbeing.

UnitingCare believes the Australian welfare system must support the transition out of poverty into stable employment.

This can be achieved through a more equitable tax and transfer system, in conjunction with innovative national employment approaches that address the changing workforce.

The issues we face

Poverty and inequality continue to grow in Australia. A staggering 2.55 million Australians were living below the poverty line in 2012.

Chronic poverty remains a high risk, with about a quarter of those who exit poverty returning to being poor within two years, and about 12 to 15 per cent of poor households remaining poor 11 years later.

Income inequality in Australia is higher than the OECD average. In the 25 years up to 2010, real wages increased by 50 per cent on average, but only by 14 per cent for those in the bottom 10 per cent, compared with 72 per cent for those in the top 10 per cent.

An increasing number of children and young people are caught up in the financial hardship affecting their families. Growing up in poverty is a key risk factor for living with long-term financial hardship as an adult, so actions that reduce the risk of poverty in families are crucial.

This includes improving the financial literacy of Australians from an early age, so that they know how to achieve a secure economic future for themselves.

Australia’s workforce participation is declining; the ageing population and advancement in technology are expected to contribute to this trend. Automation of low-skilled jobs may further contribute to the recent peak in youth unemployment.

New skills and capabilities, such as digital literacy, will be crucial in the post-mining boom era.

UnitingCare's Financial Health and Wellbeing Network

UnitingCare's Financial Health and Wellbeing Network is an advisory network that assists in identifying issues requiring national action. Members of this body are drawn from across the UnitingCare network.

The role of the Financial Health and Wellbeing Network is to develop, review and reflect upon the policies and practices of the Uniting Church in its community services ministry with people; and contribute to the advocacy of UnitingCare Australia.

UnitingCare Australia released a report today showing Australians who are experiencing financial hardship are not able to make ends meet because welfare payments are too low.

The report found that the majority of people seeking emergency relief and financial counselling from UnitingCare agencies across Australia were recipients of Newstart Allowance, and were unable to afford food and energy bills.

UnitingCare Australia today expressed concern about the abolition of the Dementia and Severe Behaviour Supplement.

“The Dementia and Severe Behaviour Supplement was introduced to meet the additional costs of caring for people with severe needs. While that cost has proved to be much larger than expected, that is reflective of the significant level of need we are facing. It is vital that we find ways to meet the needs of some of our frailest Australians,” said UnitingCare National Director Lin Hatfield Dodds.